US budget deficit was $1.8 Trillion, how have they been funding Ukraine and Israel?

Introduction

US budget deficit of $1.8 trillion in fiscal year 2024 but national debt is 31 trillion ( entire US history data )

Congress has approved substantial aid packages for Ukraine and Israel through emergency supplemental appropriations. These funding measures are separate from the regular budget process and add to the overall deficit. Here’s how the US has been funding aid to Ukraine and Israel

Ukraine Aid

The US has committed a total of approximately $175 billion in aid to Ukraine since Russia’s invasion in 2022.

This includes

$61 billion approved in the most recent national security supplemental package

$113.1 billion previously approved in emergency spending throughout 2022

The aid for Ukraine is primarily allocated as follows:

$25.7 billion for military equipment

$17 billion for Ukraine-related military activities, including training and intelligence operations

Remaining funds for economic support, humanitarian assistance, and other non-military aid

Israel Aid

The recent foreign aid package includes $26.4 billion for Israel. This allocation covers:

$4 billion for missile defense systems like Iron Dome and David’s Sling

$1.2 billion for the Iron Beam defense system

$4.4 billion to replenish defense items provided to Israel

$3.5 billion for advanced weapons systems procurement

Funding Mechanism

These aid packages are funded through emergency supplemental appropriations, which are added to the existing budget and contribute to the overall deficit.

The funding is typically achieved through a combination of

Issuing additional government debt

Types of Securities Issued

The Treasury issues various types of securities to meet government borrowing needs:

Treasury bills (short-term)

Treasury notes (medium-term)

Treasury bonds (long-term)

Treasury Inflation-Protected Securities (TIPS)

Floating Rate Notes (FRNs)

Savings bonds

Reallocating funds from other areas of the budget

While there’s no immediate plan to reallocate funds from other budget areas, the long-term fiscal impact of these decisions may lead to future adjustments.

Potential future revenue increases or spending cuts in other areas are projected?

Given the absence of specific revenue projections to cover these aid packages, it appears that the US government is primarily relying on its ability to issue debt and manage the increased deficit rather than identifying new revenue sources to directly offset these expenditures.

Conclusion

It’s important to note that these large aid packages, while adding to the deficit, are considered by policymakers as necessary expenditures for national security and foreign policy objectives.

The long-term fiscal impact of these decisions will likely be a subject of ongoing debate and policy consideration